Our Buy & Care investment process is at the forefront of innovation regarding ESG engagement and ESG integration.
For example, our portfolio managers participate actively to the engagement process. Indeed, the tripartite engagement meetings between the portfolio managers, the engagement team and the company’s representatives is still quite unique in the industry. Through this innovative practice the Cadmos Funds are ideally positioned to achieve the delicate but necessary integration of the financially material ESG factors into the investment processes.
The inside gained from the engagement process can therefore impact our fair valuation of companies. This happens essentially through the influence of ESG factors on the longevity of the a company's business model.
To remain at the forefront of innovation, gain deeper insight into the companies and create even more of a tangible impact, we are also deploying a specific social impact strategy. Our engagement is going beyond risk management in helping businesses focus on new opportunities. We have initiated such projects occasionally throughout the history of the Fund. For instance, we collaborated with an insurance company to develop microinsurance products. Within the social impact strategy we aim to stimulate "Profit-Purpose-Partnerhips" between our underlying companies and social entrepreneurs, with the aim of finding solutions to environmental and social challenges. We have already begun work on this with additional advisors and expect to be able to report on our achievements in the coming financial year.